Venture capital deal activity continued to climb in the third quarter as a total of 857 companies raised money during the period — up from 807 deals in the previous quarter and the biggest overall total since the dot-com boom year of 2001. Total dollars also increased modestly, though they are nowhere near the crazy sums invested in 2001.

But there are other signs that things are heating up, namely in the IPO market. (Just this week Seattle daily deal site Zulily filed to raise up to $100 million in the public markets). According to CB Insights, 23 companies completed IPOs in the third quarter for a total valuation of $11.8 billion, the highest aggregate value of IPO exits in five years.

Things aren’t quite as hot in Washington state, which saw yet another topsy-turvy quarter as $105.5 million was invested in 26 deals. The biggest round went to Bill Gates-backed Kymeta, a satellite communications upstart which scored a $50 million round in July. Funding dropped 50 percent compared to the second quarter, and the number of deals was relatively flat.

Washington state accounted for just two percent of all VC dollars, compared to nine percent in New York and eight percent in Massachusetts. Oregon, meanwhile, ranked 14th with $23.3 million invested in eight deals.

John Cook is GeekWire's co-founder and editor, a veteran reporter and the longest-serving journalist on the Pacific Northwest tech startup beat. Follow him @johnhcook and email john@geekwire.com.